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Hello neil, I must add some input to JK's answer which I do not believe to be entirely correct. While it is true that the interest you pay on a boat loan may not be deductible in all cases, it really depends on the type of boat that you have. A ski boat or smaller boat would not qualify. However, if you have a larger boat which has sleeping quarters, cooking facilities and a toilet, then this would qualify as a second home and the interest on your loan is deductible. Any type of boat or motorhome or RV which has sleeping quarters, cooking facilities and a toilet qualifies under the definition of qualified home. And you may deduct your interest on your main home plus one other second home, as long as the total loans between the two residences do not exceed $1 million in principal. So if you have a smaller ski boat or fishing boat without these facilities, then your interest is not deductible But if you have a larger boat that does provide these facilities, then you could deduct the interest as a qualified second residence. If this was helpful please press the Accept button. Thank you neil
For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.